If your Company is to pay you a salary at or above the Lower Earnings Limit £118 per week or £512 per month (6 April 2019 to 5 April 2020) you need to ensure that your Company sets up a Pay As You Earn (PAYE) scheme with HM Revenue & Customs (HMRC). We can assist you with the registration which is free of charge to all new clients.

HMRC will provide a PAYE reference number to your Company. Subject to the level of any salaries paid (to directors and/or employees) the Company will be required to deduct tax and/or National Insurance Contributions (NIC). As a director of the Company you have a number of PAYE responsibilities including:

  • Operating under Real Time Information (RTI), maintaining PAYE records and preparing relevant forms throughout the tax year;
  • dealing with the deduction of PAYE and NIC from salaries and paying these deductions to HMRC;
  • reporting benefits & expenses for directors and employees (Forms P11D and P11D(b) by 6 July after the end of the tax year.

Interest and Penalties may be charged for late filing and late payments.

See our Tax Rates and Allowances page for details of personal allowances, income tax rate bands, NIC thresholds etc.